Understanding

Social Media Measurement:

A Road Map

Tara Coomans

Akamai Marketing

www.akamai-marketing @TaraCoomans

#akamaimkting

27% of Businesses Measuring Social ROI

63% Measure Followers/Likes

61% Measure Click Through Rates

51% Measure Brand Mentions

35% of Companies

Measuring Social ROI

are Satisfied

SOURCE: http://www.nectarom.com/assets/Social-Media-Study-Quick-Summary_0213.pdf

•HOW to measure Social Media

•WHAT to measure in Social

Media

• A sample ROI model

Social Media is the Support Beam to Your

Business Goals

NO INVESTMENT,

NO RETURN

Revenue Word of

Mouth

Not Everything That Can Be Counted,

Counts

Not Everything That Counts, Can Be

Counted

What You Measure,

Depends on Your Destination.

Increased sales

Reduce Customer Service

Costs

Create community

Increase web traffic

Increase reach

Brand awareness

Qualitative Quantitative

Customer Feedback

Increase trust

Increase loyalty Increased leads

Website conversions

Shorter Sales Cycle

What Value Does Word of Mouth Marketing

Have?

65% of New Business

Comes From Referrals 40% of Small

Businesses Say Referrals

Bring in Bigger Returns

than Traditional Marketing

4X More Likely to Buy

When Referred by a

Friend.

Source: https://s3.amazonaws.com/ambassador/downloads/infographic/netpromo-v5.jpg

Social Media

Supercharges Word

of Mouth

Faster

More Nimble

More Reach

How Do We Quantify Word of Mouth

Volume

Few

Messages

Many

Messages

X Impact

Network

Sender

Closed/

Trusted

Large/Dis

persed

+

-

Influential

Not

Influential

+ -

Content

Message Source

+ Irrelevant

Key Buying

Factor

-

+ Personal

Experience

- Secondhand,

Hearsay

= WOM Equity

McKinsey Quarterly Research

ROI Data

Measure Success Outside of Social Platforms

INCREASED

LEADS

conversion of

sm followers

vs.

other

marketing

programs

#downloads + #webinars +

lead generation from SM

#downloads + #webinars +

lead generation from other sources

INCREASED

SALES

revenue

per

follower

#followers + #fans + #subscribers

revenue

DECREASED

CUSTOMER

SERVICE COSTS

customer

resolution

time

social media

comparison

# customer service cases on social

media/time

# customer service cases on traditional

methods/time

CAMPAIGN

EFFECTIVENESS

cost per conversion digital methods

cost per conversion other methods

ROI Data

SAMPLE CASE STUDY: Menu Launch

30-Day Campaign

ROI

• Invite 10 Food Bloggers, local and regional to

review.

• Choose variety of writers and photographers, write

a minimum of 2 posts.

• Bloggers also post on Facebook & Twitter

• Average Twitter Audience: 5,000

ROI: Influencer Program Costs

Set Up Social Media Assets Market Value

Training of Personnel $3,000

Social Media Monitoring Platform $2,000

Social Media Consulting / Campaign Strategy /

Blogger Management/Costs/Analysis

$7,200

Cost of Content Creation $7,000

Cost of Brand Owned Content Creation $1,000

$20,200

ROI: Cost Savings

Incoming Clicks EXAMPLE:

•2500 New Non-paid Visitors

•“Honolulu Restaurant” Keyword term

• Average CPC . 71

•5% Made Reservations

Online

CPC Value: $1,775

EXAMPLE:

•30 Blog Posts, local & regional

•Total Page Views: 380,727

•Total Unique Page Views: 267,299

•Average Twitter Reach: 5,000

•Average Facebook Reach: 3,200

Media Equivalency Value: (Debatable) $6,480

ROI: Cost Deflection

Media Equivalency

EXAMPLE:

•Average check increase of $5.00/check

•Increase of 10 checks/day

•Increased total is 75 checks/day

Revenue Increase: $17,400

(during 30-day campaign)

ROI: Increased

Revenues

Based on:

•Trust Factor - Low

•Relevance Factor - High

•Quantity/Volume - Medium

•Network Value - Medium

Independent Reviews (25)

Independent Social Media

Mentions (250)

WOM Value: $5,600

ROI: Word-of-Mouth

Value

Source: http://www.mckinseyquarterly.com/A_new_way_to_measure_word-of-mouth_marketing_2567

Incoming Traffic Value +

Media Equivalency Value +

Word of Mouth Value +

Product Development (savings) +

Customer Service (savings) +

Increase in Revenue (or other strategic goals)

during campaign

Gain of Social Media Program- Social Media Program Cost

Total ROI

Measuring

Set Up Social Media Assets Market Value

Cost Deflection (Media Equivalency) $6,480

Cost Savings (Online) $1,775

Word of Mouth Value $5,600

Total Revenue Increase $17,400

$31,255

Total ROI $ 31,255 - $ 20,200

$ 20,200 = 5%

•Restaurant traffic increases by 10 checks/day

•Reservation rate up 20%

•Geolocation “Check-ins” up 5%

•Reservations spend up to 10% more

•20% Increase in independent reviews (25)

•10% Increase in positive independent reviews

•5% Increase Unsolicited Positive or Neutral Social

Media Mentions: (250)

KPI’s Worth Tracking

Before We Press

“Go” Baselines in Place?

Business Goals

Established?

Website Easy to

Update?

Landing Pages Up?

Web Analytics in

Place, Optimized?

Don’t Measure Social

Media in the Social

Channel

Thank You!

Join me online for more resources and conversation:

www.akamai-marketing.com

@taracoomans

facebook.com/AkamaiMarketing

This Presentation is Available on My Slideshare

Channel:

Slideshare.com/TCoomans